What a Mortgage Will Really Cost – WSJ.com
Shopping for a mortgage has just gotten simpler.Lenders are now required to use easy-to-understand forms providing basic loan terms and good-faith estimates of closing costs. And closing agents are required to provide a settlement statement that clearly compares borrowers’ final and estimated closing costs, according to the U.S. Department of Housing and Urban Development.
The new rules, added to the Real Estate Settlement Procedures Act, went into effect Jan. 1.
The new, simplified documentation is aimed at helping consumers fully understand the terms of a mortgage and more easily compare loans from different lenders. It also reminds consumers that they can shop around for the various required closing services, instead of simply accepting their lender’s suggestions.
Good news for anyone looking to purchase a Colorado Springs home for sale! The Federal government has installed a new set of standards for any financial institution that offers mortgages. I know a lot of home buyers are uneasy about talking to mortgage brokers…especially after the housing fall-out of last year. And lets face it, mortgage shopping is stressful enough without having to worry about whether you can trust the person sitting on the opposite side of the desk.
But not to worry! With these new rules (effective January 1st), mortgage shoppers will now receive much clearer information on the details of mortgages and mortgage options. The new rules should help instill a certain level of trust between the borrower and lender and take some of the stress out of mortgage shopping. And I’m sure we would all like to spend a little less time stressing over mortgages and a little more time finding that perfect home in the Colorado Springs real estate area!
